Apple's highly rumored wearable device iWatch will be released in the third quarter, according to a Chinese-language Economic Daily News (EDN) report.

The iWatch will be manufactured by Quanta Computer, while Taiwan-based chip design house Richtek has also entered the supply chain, according to the paper. The device's touch panel will be supplied by TPK, the paper added.

The device will be powered by a processor designed in-house by Apple, but it will most probably be outsourced to Samsung, according to the report.

Apple is also said to form a R&D team to develop baseband processors for use in upcoming iPhones. Accordning to industry sources quuoted by Digitimes.com, it is not clear whether Apple will develop SoCs that will integrate application processors and baseband chips, or will continue to use discrete baseband chips. In any case, Samsung Electronics and Globalfoundries are said to manufacture Apple's new chips.

Apple currently purchases baseband chips from Qualcomm, which then produces the chips at Taiwan Semiconductor Manufacturing Company (TSMC).